Full Press Release Details
Applied DNA Sciences Reports Fiscal Second
Quarter 2016 Financial Results
Company to Hold Conference
Call and Webcast Today at 4:30 PM Eastern Time
STONY BROOK, NY. May 12, 2016 - Applied DNA Sciences,
Inc. (NASDAQ: APDN) (Twitter: @APDN) (Applied DNA) (the Company), a provider of DNA-based supply chain, anti-counterfeiting and
anti-theft technology, product genotyping and product authentication solutions, announced financial results for the fiscal 2016
second quarter ended March 31, 2016.
"Our second quarter results reflect variability in the
timing of purchase orders and contract awards. While revenue was lower than we planned, we continued to advance initiatives across
our revenue-generating verticals to further entrench our anti-counterfeiting and authentication solutions with customers,"
stated Dr. James A. Hayward, chairman and CEO of Applied DNA. "We on-boarded six new cotton manufacturers, began offering
DNAnet Home Asset Marking kits through the Automobile Association of America (AAA) website, increased the annual commitment of
DNAnet used to protect luxury brands of European automobiles, and, subsequent to the close of the quarter, were awarded up to a
$2.5 million follow-on Blanket Purchase Agreement (BPA) from a U.S. government agency."
Second Quarter Financial Highlights:
First Six-Month Financial Highlights:
Commenting on the Company's business outlook for the second
half of 2016, Dr. Hayward stated, "Although we believe we have substantial near-term opportunities in our pipeline, predicting
their timing and size is an ongoing challenge. In cotton, revenue visibility through our partners is limited even as awareness
and interest by brands and retailers build in the PimaCott and HomeGrown cotton brands. We are seeing interest by
diverse retailers that would indicate revenue growth relative to last year, but until demand converts into firm purchase orders,
we are unable to predict with certainty our growth. What is clear is that we are filling a real need in the marketplace, and I
am pleased to report that PimaCott cotton is now available on the shelves of a second major North American retailer, and that apparel
customers are just beginning to authenticate their cotton label compliance with our DNA."
"Progress is rarely linear and this is especially true
for early-stage growth companies like Applied DNA," concluded Dr. Hayward. "Demand for our solutions is burgeoning
and we are nurturing that demand with our technology and our people to assure our future success."
Fiscal 2016 Second Quarter Conference Call Information
The Company will hold a conference call and webcast to discuss
its fiscal 2016 second-quarter results on Thursday, May 12, 2016 at 4:30 PM ET. To participate on the conference call, please follow
the instructions below. While every attempt will be made to answer investors' questions on the Q&A portion of the call,
due to the large number of expected participants, not all questions may be answered.
Reserve your conference call seat now at: http://dpregister.com/10084950.
Conference call dial-in information will be provided at completion of the registration process.
Live webcast: http://services.choruscall.com/links/apdn160512
Replay (available 1 hour following the conclusion of the
Toll Free: 1-877-344-7529
Toll: 1-412-317-0088
For those investors unable to attend the live call, a copy of
the presentation is expected to be posted by end of business on May 12, 2016 and available under the "Investor Information"
tab of the company's web site.
About Applied DNA Sciences
make life real and safe by providing botanical-DNA based security and authentication solutions and services that can help protect
products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting,
fraud and diversion. Our patented DNA-based solutions can be used to identify, tag, track, and trace products, to help assure
authenticity, traceability and quality of products. SigNature DNA describes the platform ingredient that is at
the heart of a family of uncopyable, security and authentication solutions such as SigNature T and fiberTyping ,
targeted toward textiles and apparel, DNAnet , for anti-theft and loss prevention, and digitalDNA ,
providing powerful track and trace. All provide a forensic chain of evidence, and can be used to prosecute perpetrators. We are
also engaged in the large-scale production of specific DNA sequences using the polymerase chain reaction.
Go to adnas.com for more information, events and to learn
more about how Applied DNA Sciences makes life real and safe. Common stock listed on NASDAQ under the symbol APDN, and warrants
are listed under the symbol APDNW.
Forward Looking Statements
The statements made by APDN in this press release may be "forward-looking"
in nature within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements describe APDN's future
plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties,
many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating
history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time
to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K filed on December 14, 2015, and our subsequent
quarterly report on Form 10-Q filed on February 10, 2016 which are available at www.sec.gov.
APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances
after the date hereof to reflect the occurrence of unanticipated events, unless otherwise required by law.
Investor contact: Debbie Bailey, 631-240-8817,
Sanjay Hurry, LHA 212-838-3777,shurry@lhai.com
media contact: Susan Forman, Dian Griesel Int'l.,
212-825-3210, sforman@dgicomm.com
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2016 | September 30, 2015 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,785,827 | $ | 7,312,184 | ||||
| Accounts receivable, net of allowance of $19,453 and $7,140 at March 31, 2016 and September 30, 2015, respectively | 5,026,854 | 3,929,517 | ||||||
| Prepaid expenses and other current assets | 126,367 | 293,351 | ||||||
| Total current assets | 14,939,048 | 11,535,052 | ||||||
| Property, plant and equipment, net of accumulated depreciation of $1,038,674 at March 31, 2016 and $852,867 at September 30, 2015 | 879,169 | 572,107 | ||||||
| Other assets: | ||||||||
| Long term accounts receivables | - | 1,500,000 | ||||||
| Deposits | 58,488 | 62,988 | ||||||
| Goodwill | 285,386 | 285,386 | ||||||
| Intangible assets, net of accumulated amortization and impairment of $353,816 and $238,368 at March 31, 2016 and September 30, 2015, respectively | 1,549,493 | 1,598,779 | ||||||
| Total Assets | $ | 17,711,584 | $ | 15,554,312 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,633,774 | $ | 2,385,006 | ||||
| Deferred revenue | 50,162 | 282,050 | ||||||
| Total current liabilities | 2,683,936 | 2,667,056 | ||||||
| Long term accounts payable | - | 320,400 | ||||||
| Total liabilities | 2,683,936 | 2,987,456 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity | ||||||||
| Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of March 31, 2016 and September 30, 2015 | - | - | ||||||
| Series A Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of March 31, 2016 and September 30, 2015 | - | - | ||||||
| Series B Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of March 31, 2016 and September 30, 2015 | - | - | ||||||
| Common stock, par value $0.001 per share; 500,000,000 shares authorized; 24,075,092 and 21,504,578 shares issued and outstanding as of March 31, 2016 and September 30, 2015, respectively | 24,076 | 21,505 | ||||||
| Additional paid in capital | 233,038,874 | 224,186,760 | ||||||
| Accumulated deficit | (218,035,302 | ) | (211,641,409 | ) | ||||
| Total stockholders' equity | 15,027,648 | 12,566,856 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 17,711,584 | $ | 15,554,312 |
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 573,322 | $ | 1,518,761 | $ | 1,897,436 | $ | 2,760,563 | ||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 3,120,469 | 2,901,207 | 6,674,831 | 7,569,950 | ||||||||||||
| Research and development | 729,079 | 373,380 | 1,201,013 | 651,652 | ||||||||||||
| Depreciation and amortization | 170,981 | 123,079 | 389,327 | 232,805 | ||||||||||||
| Total operating expenses | 4,020,529 | 3,397,666 | 8,265,171 | 8,454,407 | ||||||||||||
| LOSS FROM OPERATIONS | (3,447,207 | ) | (1,878,905 | ) | (6,367,735 | ) | (5,693,844 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income (expense), net | 4,062 | 16 | 6,907 | (31,859 | ) | |||||||||||
| Other (expense) income, net | (24,478 | ) | (6,693 | ) | (33,065 | ) | (13,135 | ) | ||||||||
| Loss on conversion of promissory notes | - | - | - | (980,842 | ) | |||||||||||
| Loss on change in fair value of warrant liability | - | - | - | (2,994,540 | ) | |||||||||||
| Net loss before provision for income taxes | (3,467,623 | ) | (1,885,582 | ) | (6,393,893 | ) | (9,714,220 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| NET LOSS | $ | (3,467,623 | ) | $ | (1,885,582 | ) | $ | (6,393,893 | ) | $ | (9,714,220 | ) | ||||
| Net loss per share-basic and diluted | $ | (0.14 | ) | $ | (0.11 | ) | $ | (0.27 | ) | $ | (0.59 | ) | ||||
| Weighted average shares outstanding- | ||||||||||||||||
| Basic and diluted | 24,072,092 | 17,362,573 | 23,307,134 | 16,404,299 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED EBITDA
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net Loss | $ | (3,467,623 | ) | $ | (1,885,582 | ) | $ | (6,393,893 | ) | $ | (9,714,220 | ) | ||||
| Interest (income) expense, net | (4,062 | ) | (16 | ) | (6,907 | ) | 31,859 | |||||||||
| Depreciation and amortization | 170,981 | 123,079 | 389,327 | 232,805 | ||||||||||||
| Loss on change in fair value of warrant liability | - | - | - | 2,994,540 | ||||||||||||
| Stock based compensation expense | 499,668 | 539,996 | 954,781 | 2,538,519 | ||||||||||||
| Loss on conversion of promissory notes | - | - | - | 980,842 | ||||||||||||
| Bad debt expense | 10,000 | - | 22,313 | 2,779 | ||||||||||||
| Total non-cash items | 676,587 | 663,059 | 1,359,514 | 6,781,344 | ||||||||||||
| Consolidated Adjusted EBITDA (loss) | (2,791,036 | ) | (1,222,523 | ) | (5,034,379 | ) | (2,932,876 | ) |